Kotak Mahindra Bank Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.
Growth
Compounded Sales Growth
10 Years:
17%
5 Years:
14%
3 Years:
20%
TTM:
29%
Compounded Profit Growth
10 Years:
22%
5 Years:
20%
3 Years:
22%
TTM:
14%
Stock Price CAGR
10 Years:
14%
5 Years:
3%
3 Years:
-3%
1 Year:
4%
Return on Equity
10 Years:
14%
5 Years:
14%
3 Years:
14%
Last Year:
15%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
373
385
386
917
920
953
954
957
991
992
993
994
Reserves
14,894
18,699
21,770
32,447
37,572
49,535
56,827
65,680
83,348
95,673
110,821
128,978
Borrowings
85,561
85,937
104,258
179,679
205,230
249,840
291,763
326,477
327,110
365,747
418,807
520,374
Other Liabilities
15,006
17,176
22,049
27,761
32,465
37,392
45,626
50,059
67,405
84,086
89,809
117,321
Total Liabilities
115,835
122,197
148,464
240,804
276,188
337,720
395,171
443,173
478,854
546,498
620,430
767,667
Fixed Assets
620
1,264
1,385
1,761
1,759
2,543
2,697
2,675
2,554
2,723
3,075
3,510
CWIP
0
0
0
0
0
0
0
0
0
0
0
0
Investments
40,907
38,791
45,589
70,274
68,462
90,977
103,487
111,197
156,946
164,529
195,338
246,446
Other Assets
74,308
82,142
101,490
168,769
205,967
244,201
288,987
329,301
319,355
379,245
422,017
517,711
Total Assets
115,835
122,197
148,464
240,804
276,188
337,720
395,171
443,173
478,854
546,498
620,430
767,667
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
2,878
9,068
2,302
5,025
13,222
-10,392
1,822
46,619
4,881
8,308
-1,242
15,685
Cash from Investing Activity
-9,035
-1,130
-4,467
-2,353
-5,289
-5,475
-3,323
-13,068
-11,172
-10,903
-10,381
-8,919
Cash from Financing Activity
7,099
-5,814
2,426
2,024
6,055
14,679
8,365
-735
-10,072
7,543
1,883
15,515
Net Cash Flow
942
2,125
260
4,696
13,989
-1,188
6,864
32,815
-16,363
4,949
-9,740
22,281
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
5.00
-79.00
-78.00
-95.00
-168.00
-191.00
-233.00
-272.00
-304.00
-298.00
-335.00
-385.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of Kotak Mahindra Bank Ltd as of October 5, 2024 is: ₹1,908.05
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
As of October 5, 2024, Kotak Mahindra Bank Ltd is Undervalued by 5.48% compared to the current share price ₹1,809.00
Intrinsic Value of Kotak Mahindra Bank Ltd as of October 5, 2024 is: ₹2,181.63
Calculation basis:
Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 5, 2024, Kotak Mahindra Bank Ltd is Undervalued by 20.60% compared to the current share price ₹1,809.00
Last 5 Year EPS CAGR: 14.34%
*Investments are subject to market risks
Strength and Weakness
Unable to fetch valid data for stock valuation.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Kotak Mahindra Bank Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 0% (Industry Average ROE: 13.93%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 19.3 (Industry average Stock P/E: 16.23)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Kotak Mahindra Bank Ltd. is a Public Limited Listed company incorporated on 21/11/1985 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65110MH1985PLC038137 and registration number is 038137. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 27038.82 Cr. and Equity Capital is Rs. 992.33 Cr. for the Year ended 31/03/2022.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Kotak Mahindra Bank Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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